Replies to post #64 on CommunityOne Bancorp fka COB

[leftope]

I'm having trouble estimating a much higher fair value for the bank - what am I missing?

Market cap ~ $240mm
Assets - $2.04b
Shareholder's equity - $81mm
FHLB advances + sub-debt - $130mm
Run rate annualized earnings ~ $18mm

DTA valuation allowance that will be reversed and added to equity at some point - $152mm

It looks to me like the price is a slight premium to book value upon the expected reversal, giving us a bank with equity over 11% of assets, and ROE of 7.5-8%.

As an aside, I found a good primer on valuation allowance reversals: http://www.mossadams.com/mossadams/media/Documents/Publications/MA%20Now/MA-Now_FSG_Jan2012.pdf